Assessment Of The Utilization Of Financial Engineering Tools in The Malaysian Financial Market.

Abstract

This research aims to highlight the most important traditional financial concepts and Islamic financial engineering, evaluating the use of their tools through new securities, bonds, sukuk, or stocks to meet the needs of those seeking renewed financing tools that current methods fail to fulfill. This includes innovating new solutions for financial management, such as liquidity or debt management, and preparing financing formulas for specific projects that fit the surrounding conditions. Given the changes in the world of finance and business, a range of financial engineering tools have been introduced to evaluate the position of existing financial instruments, such as stocks and bonds of various types. Among the most prominent of these tools are financial derivatives, which are innovative financial instruments that derive their value from underlying financial instruments and are used for risk management .Among the most important financial derivatives are option contracts, which provide the holder with the right to exercise specific types of related contracts. We also find futures and forward contracts, swaps, and securitization, which are used as tools for managing distressed debt, in addition to determining their significance.